Commodities Corner

Going With the Grain

Commodity index-fund buying sends the grain's price sharply higher.

FUNDAMENTAL FACTORS ARE MIXED for U.S. wheat-futures in the near-term, but those influences are being pushed to the wayside in anticipation of buying by long-only commodity index funds, which could boost prices. In fact, the speculative rally already has begun, with bellwether lower-protein Chicago Board of Trade March wheat rallying 6% during December in anticipation of the index-fund buying.